I know per sure only one thing, a simple idea. Countries that grow slowly with high unemployment are and have been countries strangled by too many controls, too much concentration of power, too many vested interests.
It is so simple. Yet, we are thinking how to increase even more the dominance of the government with new agencies to protect us from birth to death.
They are all noble causes. But there is a limit. There is a limit to how much we can stimulate companies, economic sectors, the whole economy. At some point we have to let the animal spirit fly freely.
Why are we afraid to be free? Why do we want to be protected and belong to a favored group. What is happening in Europe is so tragic because it is a great lesson. I learned it because I lived there for many years. There is no escape once the government and power groups control everything you do.
The default is not a financial default. It is a human default. It is the default of the people. Because they will be forced to live in poverty for many years.
How do we defend oursevls from this historic pattern? This is the real challenge.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
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